Now that sports betting is legal, and apps allow people to bet on particular events within a game as it unfolds, there is concern that players could be (illegally) incentivized to under-perform in order to cause some bets to become winning bets.
The WSJ has the story:
America Made a Huge Bet on Sports Gambling. The Backlash Is Here. Less than six years after a Supreme Court ruling paved the way for widespread legal sports gambling in the U.S., sports leagues face an onslaught of scandals related to betting. By Joshua Robinson, , Jared Diamond, and Robert O'Connell
"American sports spent more than a century keeping gambling as far away as possible, in the name of preserving competitive purity and repelling scandal and corruption.
"Now, less than six years after the Supreme Court opened the door for states to embrace legal sports betting, major U.S. leagues are already confronting the darker sides of sports betting with alarming frequency. And at the heart of the problems is the population whose ability to bet on sports is the most severely curbed: the athletes themselves.
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"The situation has become worrisome enough that National Collegiate Athletic Association president Charlie Baker on Wednesday amped up his organization’s call for a nationwide ban on bets on the performance of individual college athletes.
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“All of the positive benefits and additional fan engagement that could potentially come from sports betting mean nothing if we’re not protecting the integrity of the game,” Marquest Meeks, MLB’s deputy general counsel for sports betting and compliance, said in an interview last summer.
"Gambling scandals have long tainted sports. The 1919 Black Sox scandal involved eight players accused of throwing the World Series for money. Baseball superstar Pete Rose received a lifetime ban for betting on baseball, a penalty that has blocked the game’s all-time hits leader from the Hall of Fame. Point-shaving scandals have periodically roiled college basketball, and NBA referee Tim Donaghy went to prison for betting on games he officiated.
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"Odds are now openly discussed on live broadcasts. Ads for betting apps seem to appear during every commercial break and are plastered around stadiums and arenas. Sports leagues even have gambling-focused programming on their official networks.
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"What’s at stake now is the promise that lies at the very center of the sports experience: Fans and participants must believe that what they are seeing is true. Yet as the leagues and the gamblers grow closer together, the mere suggestion that players could be motivated to manipulate outcomes has been enough to create fresh doubts.
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"Since the prohibition on sports gambling was lifted, leagues that had once viewed betting as an existential threat to their integrity scrambled to partner with gambling companies and brought them into the tent. This winter, Los Angeles Lakers superstar LeBron James became a brand ambassador for DraftKings, where he will dispense picks for football games. The NBA itself also announced a new feature designed to mesh the betting experience with live action: Fans watching games on League Pass, the flagship streaming platform, would be able to opt in to view betting odds on the app’s interface and click through to place wagers.
"Nothing, however, made the American marriage between sports and betting more public than what took place in the Nevada desert in February: The NFL held its first ever Super Bowl in Las Vegas.
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“To half the world, I’m just helping them make money on DraftKings,” [Indiana Pacers point guard Tyrese] Haliburton said Tuesday evening, naming one of the league’s partners. “I’m a prop.” He was referring to so-called proposition bets, in which gamblers can place wagers on specific outcomes such as how many points a player scores or rebounds he grabs."
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